Webinar: Challenges in the Estimation of ALLL

Can your bank's Allowable Loan and Lease Losses (ALLL) hold up to the examination of outside auditors and regulators? In today's banking environment you need to have a careful understanding of the challenges associated with ALLL estimation. This session will also examine new techniques and solutions for ALLL management.

This webinar will cover:

Introduction: Why is ALLL estimation important?

Regulatory perspective

Internal auditor and BOD perspective

The direct impact of ALLL estimation on a community bank's earnings and capital

Ensuring loans aren't being double counted for reserves under both FAS 5 and FAS 114

When to evaluate using the "fair market value of collateral" vs. "present value of future cash flows."

Using the appropriate and updated values for impairment analysis under either method.

Using the "fair market value of collateral" method

Using the "present value of future cash flows" method

Reassigning loans to their respective pools

Other Potential Topics

Making proper qualitative factor adjustments

Implementing migration analysis and overcoming challenges

Speaker Bio: Mike Lubansky is a director of consulting services at Sageworks, where he oversees product development, market research, and implementation in the financial institutions market. He serves as the in-house ALLL expert for Sageworks, and has led the implementation of an automated ALLL solution more than 70 financial institutions ranging in size from $37 million to $15 billion in assets. Mike has spoken for several different audiences, including several regulatory agencies, on matters pertaining to the community banking industry.